Volga Gas Plc (VGAS), a Russia-focused oil and gas explorer, will eventually double output after completing the upgrade of a processing plant in the third quarter.
Production will initially rise to more than 4,000 barrels a day, from 2,550 barrels in the first half, before expanding to 7,000 barrels in the medium term, the company said today in a statement. The upgrade will be finished in the third quarter, as planned, Chief Executive Officer Mikhail Ivanov told Bloomberg.
The exploration company posted a first-half profit of $3.4 million, after a $5.6 million loss a year earlier, while sales grew 15.8 percent to $15.4 million, according to the statement.
The completion of work at the southern Russian plant by Volga Gas, controlled by Baring Vostok Capital Partners, will allow for greater development of the company’s gas licenses in the area and follows an earlier upgrade to the site last year.
“We expect to more than double gas and condensate production from our existing wells,” Ivanov said in today’s statement. “We plan further exploration on our existing licenses and will continue actively to search for opportunities to expand the Group’s operations” through acquisitions.
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